Announcement

TAG Immobilien AG reporting successful operating business

PRESS RELEASE Report on Q1 / 2009 TAG reporting successful operating business - 81 percent increase

TAG Immobilien AG reporting successful operating business

TAG Immobilien AG / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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PRESS RELEASE

Report on Q1 / 2009

TAG reporting successful operating business 

- 81 percent increase in revenues to EUR 33.5 million
- 36 percent improvement in EBITDA before remeasurements to EUR 5.7 million
- With a small loss of EUR 0.2 million, break-even threshold almost reached
- Reduction in bank borrowings
- Slight improvement in equity ratio to 30.4 percent

Hamburg, May 14, 2009 - In the first quarter of 2009, TAG Immobilien AG
('TAG' for short) systematically and successfully pursued the targets which
it had set itself at the end of 2008 aimed at reinforcing operating
business and stepping up measures to boost liquidity. Thus, revenues in its
core residential and commercial real estate business were gratifying,
increasing by 81 percent from EUR 18.5 million in the first quarter of 2008
to EUR 33.5 million in the first quarter of 2009.

Rental income climbed by 15 percent from EUR 10.6 million to EUR 12.2
million in the first quarter of 2009, accompanied by a 17 percent rise in
net rental income from EUR 7.6 million in the first quarter of 2008 to EUR
8.9 million in the first quarter of 2009. These figures testify to the
strength of the Company's operating business. In the first quarter,
revenues from property sales climbed threefold from EUR 6.7 million to EUR
20.7 million in the first quarter of 2009. This reflects not only the
strong operating business but also the quality of the portfolio, which is
characterised by good urban locations in metropolitan regions and is the
result of active asset management aimed at unlocking value. The revenues
achieved from rentals and property sales match the Company's forecasts. In
2009, sales worth over EUR 40 million have so far been finalised, meaning
that TAG's liquidity will continue to strengthen in the course of the year.

Against the backdrop of the performance achieved to date, TAG is confident
of being able to continue the cost-cutting and efficiency-boosting efforts
commenced in 2008 in tandem with liquidity-boosting sales in 2009.

TAG recorded EBITDA before fair-value remeasurements of EUR 5.7 million in
the first quarter of 2009, up from EUR 4.2 million one year earlier,
equivalent to an increase of 36 percent. At the level of EBT before
fair-value remeasurements, there was an improvement in the loss, which
contracted to EUR 1.0 million, down from the loss of EUR 2.4 million in the
first quarter of 2008. With a post-tax loss of EUR 0.2 million (Q1/08:
post-tax profit of EUR 2.1 million), the Company came close to breaking
even.

TAG continues to exhibit solid balance sheet ratios. Thus, total assets
contracted slightly to EUR 822 million, down from EUR 839 million at the
end of 2008, while at EUR 249.6 million equity held steady at the level
recorded on December 31, 2008 (EUR 254.2 million). This slight decline is
due to the negative effects of remeasuring the fair value of the interest
hedges as a result of a further decline in interest. The equity ratio
widened slightly to 30.4 percent. There was a positive trend in non-current
bank borrowings, which increased thanks to the renewal of expiring loan
contracts. As of the end of the first quarter of 2009, they came to EUR 419
million, up from EUR 408 million as of December 31, 2008.   At the same
time, current bank borrowings contracted from EUR 130.1 million as of
December 31, 2008 to EUR 105.8 million at the end of the first quarter of
2009.

Press inquiries:

TAG Immobilien AG
Kirsten Schleicher
Head of Investor & Public Relations
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
pr@tag-ag.com



Contact:
TAG Immobilien AG
Head of investor and public relations 
Kirsten Schleicher

Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
pr@tag-ag.com




14.05.2009  Financial News transmitted by DGAP
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Language:     English
Issuer:       TAG Immobilien AG
              Steckelhörn 5
              20457 Hamburg
              Deutschland
Phone:        040 30 60 59-40
Fax:          040 / 30 60 59 - 49
E-mail:       info@tag-ag.com
Internet:     www.tag-ag.com
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Hannover, Hamburg, Düsseldorf,
              Stuttgart
 
End of News                                     DGAP News-Service
 
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